Hutch Morton rises at 3 a.m. six days a week to transport his family’s wholesale business to the Ontario Food Terminal (OFT) in Etobicoke. The business, established almost 50 years ago by his father-in-law, specializes in berries and packaged salads, exclusively operating at the food terminal. Morton emphasized the critical role the terminal plays not only for his business but also for many others in the Toronto community.

Food terminals serve as wholesale marketplaces where fresh produce is traded in bulk. The OFT alone distributes nearly two billion pounds of fruits and vegetables annually nationwide. A recent development in June saw the launch of Canada’s inaugural National Food Security Strategy by Prime Minister Mark Carney. The strategy involves a $3 billion investment over a decade to boost domestic food production and affordability, with $1 billion earmarked for enhancing choice and competition through the Food Link Fund to support food terminals and hubs.

The expansion plans include enlarging the OFT by year-end, establishing two new food terminals, and setting up or expanding ten smaller food hubs by 2028. Ontario farmers and growers anticipate that the strategy will lead to reduced grocery prices and increased access to healthy local food. Morton highlighted the significance of the OFT as a vital piece of national infrastructure supporting the Greater Toronto Area.

Raymond Den Boer, a vegetable grower from Otterville, Ontario, expressed how an expansion would benefit his business by ensuring better product storage conditions and a more appealing environment for customers. Vicky Lee from Little Harvest Market also emphasized the importance of the OFT in providing a diverse selection of locally sourced goods that are not readily available through other supply chains.

While some experts like Sylvain Charlebois from Dalhousie University’s Agri-Food Analytics Lab acknowledge the potential for stabilizing prices through the national food strategy, they caution that food inflation remains a challenge. Charlebois emphasized the importance of food hubs and terminals in increasing market access and competition, ultimately leading to price stabilization and supply chain efficiency improvements.

Charlebois also pointed out the need for better alignment between food production and consumer demand in the long term to address the decline in food manufacturing in Canada. The expansion of food terminals and hubs is seen as a step in the right direction to enhance market dynamics and support local food systems.